Over the years, real estate investing has provided great career opportunities for dozens of people who have taken advantage of this prolific business. To succeed in this industry, however, you must take certain things into careful consideration. You also have to equip yourself with proper knowledge and information to make sure that you wonâ€™t commit costly mistakes that would affect your integrity as a real estate investor. One of the things you should do to ensure your success in real estate investing is to find a good source of funds. You can approach banks and other lending institutions, such as credit unions and mortgage companies, for your financing needs. As long as you can meet the criteria set by these financial institutions, you can obtain funds for your investment properties. But what if you were unable to secure a loan from traditional lenders? What happens next? Fortunately, there is an alternative to traditional financing called a hard money loan. Unlike those provided by banks, mortgage companies, and credit unions, hard money loans (HMLs) are asset-based. Lenders of HMLs verify a loanâ€™s eligibility by assessing the after repair value, or ARV, of a property, which serves as the collateral. Because hard money loans are asset-based, lenders are not concerned about a borrowerâ€™s credit history. They donâ€™t care if the borrower has a bad credit score or if his current financial status is unstable. As long as the property, for which the loan is made, has a potential to attract a great deal, lenders will provide the borrowers with the funds they need. One advantage of securing loans provided by hard money lenders is that borrowers donâ€™t have to undergo credit checks. In addition, they donâ€™t have to deal with a processing team, which is a common procedure in traditional financing. Because of such a scenario, the releasing of funds can be done in just a few days. Borrowers donâ€™t have to wait for weeks or months just to acquire the money they need. According to certain experts, it is ideal to use hard money loans when purchasing investment properties. Lenders of HMLs sometimes provide 100% financing on some deals, which is something that a traditional lender canâ€™t do. In addition, some hard money loans provide coverage for repair costs, which is perfect for those who buy and rehab homes for profit. To find hard money lenders, you can join the local real estate investing club and ask your fellow real estate investors for referrals since most of them have experience working with these people. Settlement attorneys can also provide you with a lead to a hard money lender because they are the ones who prepare loan documents for lenders of HMLs. You can also gain access to trustworthy hard money lenders on RehabHardMoney.com. Because the web site brings together HML lenders and borrowers from many parts of the country, finding a good source of funds for your real estate investing business is just a walk in the park. To learn more about hard money lending, visit www.RehabHardMoney.com
We own a plum commercial building in the middle of the best part of the downtown area of a small town. I have top credit—over 800. My sister has about 780. We want to refinance. Our interest rate is 8.5%. Are there any reputable companies that will refinance for a much better rate??
www.realestate-network.net Bank owned 2 units $230000 great location and positive cash flow $2200 monthly income. Front house is 3 bedrooms rear unit is 2 bedrooms. Two car detached garage. http Video by William Bamish of The Real Estate Network, a real estate investment company located in Newport Beach California. We specialize in many real estate investments, wholesale property acquisitions, direct hard- private money lending, financing conventional and FHA mortgages. Visit our website at www.realestate-network.net call 949-574-4900 or email firstname.lastname@example.org Office location 6400 W. Oceanfront Newport Beach California 92663. The Real Estate Network has been at this location for 10 years. DRE #01185564 MLO #345030 OREA #AR008704 The Real Estate Network has enjoyed three decades as a Southern California real estate brokerage and investment company helping investors and clients achieve their financial goals.
www.JimmyReed.net Jimmy Reed & John Zarrella bring in REIO’s Hard Money Expert & Lender Terry Weakley. Terry gives Great advice for those Newbies just starting out in real estate!
Contrary to popular belief, hard money loans are not just for buying investment properties alone. This type of non-traditional financing has many uses and even conventional homeowners can get huge benefits by using it. Although some people discourage others from borrowing hard money because of its high interest rate, securing this mode of financing can help you in more ways than you can imagine.
As you may know, hard money is collateral-based. This basically means that you’ll get funds depending on the value of the property offered as collateral. Because it is collateral or asset-based, a borrower doesn’t have to go through conventional underwriting process, including credit checks and interview with loan officers, when securing hard loans.
Hard money lending is a popular financing option for many real estate investors when buying investment properties as it provides them with great convenience. For starters, asking hard money lenders for help instead of banks and mortgage companies help them save time since they don’t have to undergo tough credit checks or file mountains of financial documents.
Life what was mentioned earlier, hard money loans are not just for securing investment properties. It can also be used to fund tricky real estate deals, like wholesaling bank owned homes. It is no secret that in most cases, there’s a non-assignability clause that is attached to REOs. To overcome such a hurdle, real estate investors turn to hard money lenders to make a simultaneous closing possible. Because hard money can be released immediately, investors can secure the funds they need to “buy” an REO from the bank before flipping the property to their end buyers.
Hard money lending is also beneficial to ordinary homeowners who are having a hard time keeping up with their mortgage payments. A homeowner can save his property from being foreclosed by the bank by securing hard money. Â Since lenders don’t depend their decision to approve or reject a loan application on a borrower’s credit rating, a homeowner can secure the funds he needs to pay off his debts as long as the property he’s offering as collateral has great equity.
In addition, a homeowner can still make it in time even if the bank has given him a week to pay off his mortgage. Hard money lenders are quicker to process a loan as compared to traditional financiers, which is why a borrower can get the required funds in a day or two.
Looking for a good source of hard money loans? Visit www.RehabHardMoney.com.
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I’ve got a great idea on how to buy a house w/o having to take out a mortage ? What do you think of it …..
Letâ€™s say I want to buy a commercial property for 200K and donâ€™t want to put do 30% and get into an 8 – 10% interest rate commercial mortgage. I own a very profitable company which grosses 1M per year, Bank are always offering this company large loans or equity lines on the business. What is my company borrow me some money, at a fair interest rate of say 5% simple interest and I use it to buy this property ?
What are the advantages and disadvantages? From what I can see. I will have lots of money on the loan (interest) and not have to make a large down-payment and Iâ€™ll own the properly free and clear.
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Self-directed IRAs are often referred to as checkbook IRAs because of the funds made available to an investor’s checking account. This freedom to use your IRA when you want is a great asset to converting a traditional IRA to a self-directed IRA.
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One fear that many new Real Estate Investors have is where to find money for real estate investing. And once new Real Estate Investors begin to read about some of the options they may have, they are bound to come across the term “Hard Money Lender“. So, what is a Hard Money Lender (HML)?
A Hard Money Lender is a private individual or small company of private lenders who are usually locally based in the area where the real estate is being purchased. Hard Money Lenders often look at a potential real estate deal when deciding whether or not to make a loan on a particular property. Unlike traditional banks or lenders, they are generally not as concerned with a particular person’s financial background, situation, or credit. The property is the direct collateral for the loan.
Hard Money Lenders often charge a hefty premium to lend money, meaning several points more and a very high interest rate for each loan; many real estate investors do not use HMLs because of this. Many Hard Money Lenders can turn around a loan (meaning you can have money in hand) within 24 hours.
Sometimes Hard Money Lenders are used in addition to regular or traditional funding. Other times Investors utilize Hard Money as his or her only means of funding.
When considering whether or not to use hard money, you have to calculate your numbers to decide if this is something that is worth it to you. If you need money within two days and will gross $40,000 when all is said and done, does it really matter if you have to pay $10,000 for the money? Or is it just part of the costs of doing business? Only you can determine this.
What is the best way to find Hard Money Lenders?
The best way to find a Hard Money Lender is to talk to people who are already working with them. The simplest way to do that is to ask other active investors. Find other investors by attending REIA meetings. Another great way to find other investors is to go to foreclosure auctions. See who is bidding on which properties, bring business cards and strike up a conversation. Ask them where they are getting the money and go to the same person or place.
You can also check with:
1. Attorneys and/or title companies (that handle closings for other investors)
2. Real Estate Brokers (that work with investors)
3. Bank Officers (small, local banks that are portfolio lenders, lenders who keep the loans “in house”)
To find a Hard Money Lender, you need to tell everyone you know that you are a Real Estate Investor. You need to build a team and you need to network with other investors. Often times if the numbers on the deal are solid (“guaranteed” profitable), finding the money should not be a problem (especially when you have surrounded yourself with a network).
Finally, when Investing in Real Estate, it is important to weigh all of your financing options against all of your proposed exit strategies. Real Estate Investors who consider all of the pros and cons of a potential deal will have a much easier time knowing where to find the money that they need.